The Middle East market, particularly the UAE, holds great appeal for exporters of food and beverages. It hosts one of the largest F&B industries in the region, second only to Saudi Arabia. Considering the statistics, the industry is projected to spend a remarkable $44.5B in 2023. The demand for imported food in the UAE is also exceptionally high, with over 90% of the nation’s food being brought in from abroad. Although this creates intense competition, it also offers significant opportunities for successful brands and products, as it creates a business landscape open to new players to leverage.
Due to its highly globalized economy and diverse population of expatriates from around the world, the UAE displays a strong inclination among its consumers to explore various cuisines. There is a rising interest in discovering new international flavors and food offerings. Notably, the COVID-19 pandemic further amplified the popularity of international foods as a way to experience different cultures without leaving the country. Asian cuisines, such as Chinese, Japanese, and Thai, are particularly prevalent, with consumers frequently patronizing restaurants that serve these types of food.
Snacking is highly prevalent in the UAE, with approximately half of the population regularly indulging in snacks between meals. This trend, combined with the increasingly hectic lifestyles of consumers, has led to a growing focus on on-the-go snacking options. Notably, nuts are an area of significant interest, witnessing substantial growth as consumers seek convenient and nutritious snacks to enjoy between meals. Snack bars that incorporate natural ingredients like whole grains, fruits, and nuts are also gaining popularity as the demand for healthier snack options expands. As the tourism industry recovers from the impact of the pandemic, the demand for snacks is expected to rise even further, with convenient formats becoming increasingly favored. This presents opportunities for exporters from all around the world.
Moreover, Ras Al Khaimah Economic Zone (RAKEZ) is supporting F&B industry investors to set up and expand in the UAE. By regularly participating in the annual Gulfood exhibitions, RAKEZ demonstrates its dedication to the industry and showcases the diverse opportunities and offerings available for F&B investors in Ras Al Khaimah and the UAE.
Based on data from Statista, a global provider of market and consumer information, the F&B market in the UAE currently generates revenue of nearly $38B. It is projected to experience an annual growth rate of 4.39% until 2027, a positive outlook that encourages businesses operating in this industry.
According to Mordor Intelligence, on the other hand, the F&B industry in the UAE is predicted to experience an estimated compound annual growth rate (CAGR) of 6.8 percent from 2022 to 2027, indicating promising prospects. The Dubai Chamber of Commerce, citing Euromonitor International data, highlighted that consumer foodservice outlets in the UAE achieved AED 58.4B ($15.9B) in sales last year. This growth was attributed to the industry’s swift response and recovery from the pandemic, as well as robust economic development.
Moreover, as part of its dedication to enhancing the global competitiveness of the Food and Beverage industry in the UAE, UAE Restaurants Group has announced a strategic partnership with JLL. The objective is to enhance efficiency and foster growth within the country’s foodservice market. Recognizing the opportunities for growth within the UAE’s F&B service market, JLL Foodservice Consulting, a prominent consultancy specializing in the F&B sector in the region, will collaborate with UAE Restaurants Group to formulate both short- and long-term strategies. The partnership aims to establish a roadmap that facilitates stronger connections with the government and enhances transparency in best practices among suppliers, aggregators, and other stakeholders. The ultimate goal is to achieve sustainable growth for all parties involved.
Overall, the UAE’s Food and Beverage business landscape is driven by several key trends that offer immense opportunities for exporters and investors. The country’s robust F&B industry, ranking among the largest in the region, is projected to reach a significant expenditure of $44.5B in 2023. With a highly globalized economy and a diverse population, the UAE’s consumers have a strong inclination to explore various cuisines, particularly Asian flavors. In addition to the government and free zones’ support, such as RAKEZ supporting F&B investors in setting up and expanding their operations in the UAE, strategic partnerships, like the one between UAE Restaurants Group and JLL, aim to enhance efficiency and drive growth within the foodservice market. This helps foster sustainable development and promote transparency. With a positive outlook and promising growth projections, the UAE’s F&B industry is poised for further expansion and success in the coming years.
